Page 61 - Watauga FY22-23 Budget

BUDGET OVERVIEW – BUDGET-IN-BRIEF

Water and Sewer Fund

The Utility Billing Office bills and collects revenues from the sale of potable water
and the disposal of sewage discharge for single and multifamily residential
buildings and commercial facilities inside the City. Projected revenues for these
fees are generally based on population estimates, although weather conditions
play a significant factor in revenues actually received. The City is 96% built out and
increases in customer accounts are projected to remain fairly flat in future years.
Water and sewer sales constitute 95% of the Water and Sewer Utility Fund
revenues. Other revenues such as penalty revenue, service charges, interest and

transfers make up 5% of the total revenues. Total charges for water and
wastewater services are forecast to be $9,040,000, with total revenues of
$9,511,000 and total available resources are $12,244,312. A rate increase is not
included in this budget. A rate model review is underway, and a rate increase will
be presented in the second quarter of Fiscal Year 2023 if needed. The City
contracts with the City of Ft. Worth for wastewater treatment and the City of North
Richland Hills for water purchases.

Expenditures for water purchases and sewer treatment services also vary based
on customer usage and weather. Total expenses are estimated as $9,593,859.
These expenditures include an increase in our wholesale water by 3% and an
increase our wholesale wastewater costs by 11% by the City of Ft. Worth. These
costs will be monitored closely to ensure the costs can be absorbed in the current
appropriations.

52